Woodspin, tasked with producing and distributing Spinnova fibre from wood, is equally owned by Spinnova and Suzano.
After conducting a strategic review, the two companies have reached a non-binding term sheet.
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Under the proposed agreement, Spinnova intends to purchase Suzano’s stake in Woodspin for €1 for all Woodspin shares. Both companies have pledged continued financial support for Woodspin for the fiscal year 2025, as arranged in February.
As of 31 December 2024, Spinnova’s investment in Woodspin was valued at €19.4m on its books.
Spinnova also plans to acquire all Suzano Finland shares from Suzano for €1. This includes all assets within Suzano Finland, primarily consisting of refining equipment and microfibrillated cellulose (MFC) technology. The deal would encompass the transfer of 18 employees from Suzano Finland, which is fully owned by Suzano.
Suzano Finland supplies raw materials for Spinnova fibre production and shares a facility with Woodspin in Eteläportti, Jyväskylä.
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By GlobalDataThe joint venture agreement between Spinnova and Suzano, including exclusivity rights, would be dissolved, allowing Spinnova to freely licence its technology to any producer using wood-based materials for fibre production.
Additionally, Suzano will invest €5m into Woodspin and Suzano Finland.
The proposed deals are expected to leave Spinnova’s operations unaffected in the short term. Through these acquisitions, Spinnova would gain full ownership of a significant demo facility equipped to transform pulp into Spinnova fibre bales without immediate cash flow drawbacks.
Finalisation of these transactions— encompassing share purchases and termination of exclusive rights— is contingent upon definitive agreements anticipated by end of August 2025.
Following negotiations concluded on 26 May 2025, affecting all staff at Woodspin (33 employees), it was announced that most employees (27) will face temporary layoffs pending further developments. While alternatives are being explored to resume operations at Woodspin, activities will be halted for the time being.
Spinnova CEO Janne Poranen said: “We have received confirmation from textile value chain operators that the properties of Spinnova’s fibre are already sufficient for selected commercial applications. However, fibre production costs are currently too high. For this reason, we will focus in particular on reducing production and investment costs.
“The goal is to build an international consortium of companies, the aim of which is to accelerate the scaling of the Spinnova concept. We are currently looking for partners for this collaboration.”
Spinnova’s updated strategy
During 2025-2026, Spinnova will concentrate on enhancing its technology to become more cost-effective as production expenses remain elevated despite the fibres being functional in various applications.
The company plans to continue improving Spinnova fibre characteristics for both textile and non-textile uses and to select suitable wood-based and other cellulose materials for its processes.
It also intends to support Respin, its joint venture with ECCO focused on commercialising leather waste-based fibres.
Spinnova anticipates achieving annual cost savings of €500,000 by consolidating its operations in Jyväskylä, Finland.
The company has decided not to provide financial projections for 2025 and 2026.
